Incheon-Qingdao Intercity Network and Implications for Building a Trans-border Region

Se Hoon Park

Research Fellow, Korea Research Institute for Human Settlements, 1591-6 Gwanyang-dong, Dongan-gu, Anyang-shi, Gyeonggi-do 431-712, Korea, Tel: +82-31-380-0220, Fax: +82-31-380-0485 shpark@krihs.re.kr

JEL Classification: R12

Abstract

The Incheon-Qingdao (including Seoul metropolitan-Shandong) intercity network has flourished through geographical proximity and economic complementarities since the opening of the Chinese border in 1992. However, the inter-city relationship characterized by the exploitation of the difference in factor prices over the border has recently begun to see signs of trouble as the Chinese government implemented policies to tighten labor and environmental regulations. The paper deals with the ups and downs of the Incheon-Qingdao intercity network and draws some policy implications for the future development of the trans-border cooperation.

Keywords:

Trans-border region, Inter-city network, Incheon, Qingdao, Regional development

Acknowledgments

The earlier version of this paper was presented on August 20, 2009 at the International Workshop for Trans-border Regional Development and Urban Strategy in East Asia organized by KRIHS in Anyang, Korea. The author would like to thank Sung-Ho Kang, a research fellow from Incheon Development Institute, and Gwang Sik Yang, a Ph.D. candidate from Shandong University, for sharing their valuable opinions and information.

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